Underlying software technology is a huge determinant of an vendor’s ability to deliver on these three requirements. This is the very reason Consona bought Compiere.

“It’s not about the open-source business model or Compiere’s customer base. Instead, it’s all about the technology,” says author Don Fornes.

So why is this relevant for software vendors and buyers? Because there is a big shift underway from client/server systems installed “on premise” to cloud-based or software-as-a-service systems that are hosted in a secure data center and accessed through a web browser. Moreover, the open source movement is producing underlying technology that is not only free, but increasingly really good stuff. Software vendors that don’t make the transition will wither on the vine.